KiwiSaver advice

• Should I contribute 3%, 4%, 6%, 8% or 10% of my income?
• I’m in a default KiwiSaver. Do I need to make changes?
• Am I using the right Prescribed Investor Rate (tax rate)?
• How can I ensure I get the Government contributions each year?
• What fund should I be in to suit my age?
• How do I use my KiwiSaver to purchase my first home?
• When do I want to retire?
• Can Grand Parents contribute into a child’s KiwiSaver?
• My children received an inheritance from my parents - should it go into their KiwiSaver account?

At Gannon Insurance Brokers we have helped many clients navigate these questions to help you make the most out of your KiwiSaver savings.

Here’s a tip for those turning 65 soon who have a KiwiSaver…

So you’re turning 65 soon and ready to start your retirement. You are counting down the days and ready to cash in your KiwiSaver savings.

Halt that thought for just for a minute.

In July each year the Government Contribution (GC) is put into your KiwiSaver account if you are between the age of 18 and 65.

The amount depends on how much you have contributed during the KiwiSaver Year. If you have contributed $1,042.86 a year, then you are eligible for a full Government Contribution of $521.43. The Government calculates the GC on 30th June each year for payment in July.

So, say you’re turning 65 in November that same year. You are entitled to 5/12ths of the GC (July to November).

But here’s the thing

it won’t be paid unless you keep your KiwiSaver account going until the 2nd week of July the following year.

So, don’t miss out on the last portion of the GC from the Government in your haste to retire.

Remember…

If you turn 65 between 1 July, and 30 June the following year, wait until your partial GC is paid before cashing in your KiwiSaver account and booking that once in a lifetime adventure. You might at least be able to afford another cup of coffee for your trouble.

Many clients decide to keep their KiwiSaver account active and use it as part of their retirement plan. As a Financial Adviser we can calculate the amount you can withdraw each fortnight to supplement the New Zealand Super and make it last until you are 90 or to an age you select.

Testimonial

We have consulted Roger with regard to insurance for many years, and when we decided to investigate planning for early retirement, back in 2011, Roger was our go-to person, to see if it was even possible. We worked out a plan together and were able to achieve our goal. We are into September of our first year of retirement, and greatly enjoying our new freedom to choose what we do. This is well supported by our investment income. We also received good advice about our KiwiSaver contributions. Roger’s advice has enabled us to make the best use of our money for saving towards our future. G&RE